Research from Greenwich Associates and State Street Global Advisors uncovers a surge in ETF adoption by insurance companies. What's driving the increased use of ETFs? Read the report to find out.
In a survey of US insurance companies, Greenwich Associates asked respondents about their use of exchange traded funds (ETFs) and found:
1 The majority of insurance companies use ETFs —and expect to increase usage in the future.
2 Insurance companies’ use of fixed income ETFs has accelerated.
3 ETFs support a broad range of applications, across company size and type.
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Resources to guide your decision making
Consult the SPDR® ETF Listing for Insurance Companies.
Check our math on adjusting book value based on differences between forward looking cash flows and fund distributions.
For short-term liquidity needs and potential risk mitigation, floating rate investment-grade notes may provide some yield, but at a lower duration risk than fixed rate exposures.
A leader in fixed income index investing:
1 Raghu Ramachandran, “ETFs in Insurance General Accounts,” S&P Dow Jones Indices, May 2018.
2 State Street Global Advisors as of June 30, 2019.
Investing involves risk including the risk of loss of principal. ETFs trade like stocks, fluctuate in market value and may trade at prices above or below the ETFs’ net asset value. Brokerage commissions and ETF expenses will reduce returns.
Asset Allocation is a method of diversification which positions assets among major investment categories. Asset Allocation may be used in an effort to manage risk and enhance returns. It does not, however, guarantee a profit or protect against loss.
This material is for informational purposes only and does not constitute investment advice and it should not be relied on as such. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. There is no representation or warranty as to the current accuracy of, nor liability for, decisions based on such information.
State Street Global Advisors Funds Distributors, LLC, is not affiliated with Greenwich Associates.